UAE’s commercial market among the strongest globally in Q1 2023: RICS
27 April 2023, Zawya
The UAE’s commercial property market remained among the strongest globally in the first three months of 2023, the Royal Institution of Chartered Surveyors (RICS) said in its latest commercial property monitor report.
The investment sentiment index (ISI), an aggregate of occupier and investor sentiments, reported a reading of +23, reaching its strongest measurement since Q3 2014.
The positive sentiment was driven by an acceleration in investment demand growth (net balance) across all sectors covered in the survey, the report noted.
In addition, domestic and foreign investment enquiries remained solidly positive, recording sentiments of +52% and +58% (net balances), respectively.
Overall, occupier demand remained stable in the UAE, with office and retail sectors reporting the highest sentiments of +60% (net balance).
Although a little weaker, occupier demand in the industrial sector remained firmly positive. However, rent expectations stay strongly positive for the next three and 12-month horizons.
The office sector drives the commercial real estate segment in the country and will continue to lead for the foreseeable future, given three-quarters of survey participants reported improvement in the market.
Overall, the capital value and rental growth outlook for the Middle East and Africa (MEA) remains solid for the next 12 months, RICS stated.